CITY OF LONG BEACH NEIGHBORHOOD SERVCES BREACH OF CONTRACT LONG BEACH, California

In September 2011, I applied for a rehab loan through the City of Long Beach.  My loan application went through all the proper channels, and all proper entities approved it.  In November 2011, I signed my loan documents, and a contract for the city contractor to perform the work. The loan was funded, and the City is now on my home as a second lien.   In July 2012, eight months after I signed my loan docs with the City, I received a letter from a Patrick Ure, essentially wanting me to reapply for the loan I already had.  He requested me to provide documents that are not required on the application, and requesting me to answer questions that, again, are not on the application. Also, he informed me in this letter that he was holding payment to the contractor until such time as he deems me worthy of qualifying for this loan that, again, I already have.   I protested to the City Attorney, who referred me back to the rehab dept.  I reported this to Mayor Foster's office, who, again, referred me back to the rehab dept.  No one questioned the fact that the City is in breach of contract.   However, a month after I reported this illegal act to the Mayor's office, I get another letter from Mr. Ure, stating that he made not only 1, but 2 payments totaling over $27,000 to the contract, and informs me that I must pay this money back to the City immediately. Mr Ure had no right to pay out such a large sum of money.    

My home remains uninhabitable to this day.  The contractor did not perform over $27,000 worth of work at my home, and there are corrections that the city inspector noted for this contractor that have not been corrected.   It has been disclosed, through an insider, that the money that was set aside for these loans has disappeared into another project promoting the self-interest of the Head of the Homeowner Neighborhood Services, Angela.  Therefore, they were trying to recall these loans under the false pretense that individuals did not qualify for them.   At this point, I do not know where to turn, or who can help me.  How can I get justice from a City that has played fast and loose with Federal Funds? I am seriously thinking of walking away from my home.  If I cannot live in it, what is the point of paying for it?